$249 Million Worth of Bitcoin Positions Liquidated After Price Drop

by Giorgi Kostiuk

2 years ago

Over the past 24 hours, the cryptocurrency market witnessed a significant drop, leading to $249 million worth of long positions being liquidated due to the rise in the 10-year U.S. Treasury yield.

Reason Behind the Crash

Bitcoin's sharp price decline followed an increase in the 10-year U.S. Treasury yield. The Institute for Supply Management (ISM) released its latest report indicating a rise in the December Purchasing Managers' Index, sparking inflation concerns.

Market Reaction

In response to this data, U.S. equity markets also experienced a substantial drop. The Nasdaq-100 index fell by 1.3% and the S&P 500 slipped by 0.57%. Shares of MicroStrategy, the largest corporate holder of Bitcoin, dropped nearly 9% on Tuesday.

Experts' Position

Although the ISM services index is concerning for risk assets, Oliver Allen of Pantheon Macroeconomics believes that these data might not indicate a persistent inflation trend.

"The index is pretty volatile and often swings up and down without this ever showing up in the inflation numbers. We had a similar scare last January that ended up being a big fat nothing,"Oliver Allen

Markets continue to experience turmoil due to inflation concerns causing sharp fluctuations in cryptocurrency and stock prices. While recent economic data are alarming, experts caution against drawing definitive conclusions too soon.

Tier I

Sector: #18291

Sealed Hiding Place Room

Resource Cache

Tier I

Requires 25% Tier Progress to Claim

Meme Cache

Tier I

Requires 50% Tier Progress to Claim

Equipment Cache

Tier I

Requires 75% Tier Progress to Claim

After collecting, hiding places will be stored in your inventory and can be opened with Keys.

Tier I

Sector: #18291

25%

50%

75%

100%

Tier II

Survivors rescued:

0 / 600

Survivors

0/0

Transmit Signal

Broadcast this sector's coordinates to other rescuers.

Other news

Samsung and Solana to Enable Cross-Border USDC Transfers in Samsung Wallet

Samsung and Solana announced plans to integrate cross-border USDC transfers into Samsung Wallet, targeting 82 million US Galaxy devices.

Zainab Kamara17 minutes ago

More Americans Have Tried Crypto Than Last Year, But Usage Remains Flat

A recent survey shows that 22% of Americans have tried cryptocurrency, up from 18% last year, but active usage remains flat at 13%. Curiosity drives interest in crypto.

Son Min-ho30 minutes ago

Solana Expands Speaker Lineup for Breakpoint Event in London

Solana has announced an expanded speaker lineup for its upcoming Breakpoint event in London, scheduled for November 15-17, 2023, featuring notable political and financial figures.